USD/CHF retreats from near two-week tops, but holds above 0.9800 handle

   •  A modest USD retracement prompts profit-taking.
   •  Reviving safe-haven demand adds to the pressure.
   •  Surging US bond yields likely to limit further downside. 

The USD/CHF pair surrendered all of the early modest gains to near two-week tops and has now dropped to the lower end of its daily trading range.

The pair stalled its ongoing recovery move just ahead of mid-0.9800s and witnessed some profit-taking, especially after the recent appreciation of around 150-pips from 3-month lows touched last week. 

A modest US Dollar retracement, primarily led by a sharp spike in the Japanese Yen and a goodish EUR/USD rebound, has been one of the key factors behind the pair's retracement of around 20-25 pips from session tops.

Adding to this, a weaker opening across European bourses provided an additional boost to the Swiss Franc's safe-haven appeal and further collaborated towards keeping a lid on any further up-move for the major.

The downside, however, remained cushioned by a strong follow-through upsurge in the US Treasury bond yields, which continues to scale multi-month highs on growing bets for at least three Fed rate hike moves in 2018.

Today's US economic docket features the release of import price index, which along with the final wholesale inventories data would now be looked upon for some fresh impetus later during the NA session.

Technical levels to watch

Any meaningful retracement is likely to find fresh buying interest near the 0.9800 handle and is closely followed by important moving averages (200 & 100-day) confluence support near the 0.9780 region.

On the upside, momentum above 0.9845-50 zone might continue boosting the pair further towards reclaiming the 0.9900 handle en-route 0.9925-30 supply zone.